The difference between products in
Explanation of Solution
In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.
The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more
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Chapter 14 Solutions
Microeconomics Plus Mylab Economics With Pearson Etext -- Access Card Package (2nd Edition) (the Pearson Series In Finance)
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningExploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc